The Economy and Enterprise Overview and Scrutiny Committee were scheduled to discuss houses in multiple occupation (HMOs) and the Supported Housing Improvement Programme (SHIP). The committee was expected to review the council's powers to regulate HMOs, and to receive an update on the SHIP, which aims to improve standards in non-commissioned supported housing.

Houses in Multiple Occupation

The Economy and Enterprise Overview and Scrutiny Committee were scheduled to discuss a report providing an overview of the council's powers in relation to HMOs¹. According to the report, an HMO is defined as a building or flat occupied by three or more people, from more than one household, who share basic amenities such as a bathroom, toilet, or cooking facilities. As of 13 October 2025, there were 268 licensed HMOs outside of Durham City, and 898 licensed HMOs within Durham City.

The report stated that the council has limited powers to control the creation of HMOs, but it does have powers relating to:

• Planning and Article 4 Directions²
• HMO Licensing
• Selective Licensing³ The committee were to be reminded that on 21 July 2025, the cabinet approved, in principle, the making of a non-immediate Article 4 Direction to remove permitted development rights for changes of use from dwelling houses (Class C3) to small HMOs (Class C4). The Article 4 covers the whole of the county other than areas already covered by existing Article 4s (i.e. Durham City; Framwellgate Moor, Newton Hall and Pity Me; and Mount Oswald, Carrville and Belmont). This Article 4 was confirmed and will come into effect on 17 August 2026, meaning small HMOs will need planning permission.

The report stated that for the Article 4 to be effective, a new HMO policy will be required in the new County Durham Plan (CDP). In advance of the CDP, an interim policy approach will also be developed.

The report included a summary of the responses to the consultation on the Article 4 Direction, which took place between 15 August and 26 September 2025. In total, 1,443 responses were received, with 1,127 agreeing with the proposed Article 4 Direction. The main concerns raised by residents were:

• Community safety
• Loss of community cohesion
• Loss of family housing
• Strain on local services
• Concerns about migrants
• Negative impact on property values and neighbourhood quality
• Need for greater local controls and oversight

Responses were also received from organisations and other stakeholders, including:

• Cornerstone, a housing charity, raised concerns that the Article 4 would introduce new barriers and delays to delivering housing.
• The National Residential Landlords Association commented that HMOs are essential in student areas, rural communities, and for low-income individuals, young adults, and seasonal workers.
• Cotherstone Parish Council, Middleton-in-Teesdale and Newbiggin Parish Council, Monk Hesleden Parish Council, Murton Parish Council, Staindrop Parish Council and Bishop Auckland Town Council responded in support of the Article 4.
• Durham Parish Council supported the extension of the Article 4 to parts of Aykley Heads electoral division but questioned the need to include areas not subject to the same development pressures and if the evidence justifies a county wide approach.
• The Durham Police and Crime Commissioner supported the proposal on the basis that poorly managed HMOs can be linked to crime, anti-social behaviour and exploitation.
• Durham City Trust noted the numbers of HMOs within Durham City is significantly higher than the rest of the county and commented a countywide Article 4 will not of itself prevent more HMOs and that a policy basis would be needed to assess applications against.

Supported Housing Improvement Programme

The Economy and Enterprise Overview and Scrutiny Committee were scheduled to receive an update on the Supported Housing Improvement Programme (SHIP).

The SHIP was established after Durham County Council successfully bid for funding from the former Department for Levelling Up, Housing and Communities (DLUHC) in summer 2022. The council was awarded £578,795 in late 2022, to run up until March 2025. The purpose of the funding was to enable the council to increase its oversight and involvement within the non-regulated, non-commissioned supported housing sector.

The SHIP funding established a multi-disciplinary team, made up of six posts including:

• a programme co-ordinator
• two housing benefit officers
• a housing needs officer
• a property inspection officer
• an adult social care officer

According to the report, the SHIP team was established from January 2023 and is making significant progress with increasing Durham County Council's oversight in relation to the non-commissioned supported housing sector, as well as making significant improvements with the property and support standards across this sector.

The report stated that the programme is also making a positive financial impact for the council by progressing with plans to reduce housing benefit subsidy loss. The SHIP team are working with supported housing providers to reduce bed blocking, as well as challenging new provision and scrutinising existing housing benefit claims.

The report stated that between 2020 and 2022 the non-commissioned supported housing sector across County Durham saw a 40% growth in the total number of units. Since the introduction of SHIP in January 2023 the total number of units has increased by 14%, a significant reduction in the rate of expansion across the sector.

The SHIP team has also developed a gateway approach to strengthen internal processes and scrutiny of prospective non-commissioned supported housing providers wishing to move into County Durham and existing providers who wish to expand their existing portfolios. Since the start of SHIP in January 2023 and up until October 2025, there have been 34 approaches from providers, all from non RPs, of which 6 have been in the past 12 months. Of the 34 approaches:

• twenty eight providers chose not to progress with their plans
• two providers did submit housing benefit claims but were refused following scrutiny of their claims
• two providers (three properties in total) progressed to receiving exempt accommodation status
• two proposals have only recently been received and Durham County Council is in the very early stages of understanding these proposals further.

The report also stated that between June 2023 and March 2025, 481 tenant reviews (across 21 providers) have taken place to validate housing benefit decisions and ensure that tenants are receiving above the minimal amount of care, support, and supervision. 62 housing benefit claims have been suspended or cancelled, and a further 22 claims amended as a direct result of information disclosed during SHIP support reviews, highlighting incorrect information on housing benefit claims as well as concerns about lack of support, non-engagement, or vacant properties.

Since the start of SHIP, 356 non-commissioned supported housing properties have been inspected, with defect reports being sent to providers where properties repairs are needed, in line with the Housing Health and Safety Rating System (HHSRS).

The SHIP team has facilitated 119 tenants to sign up to Durham Key Options (DKO)'s housing register, 27 people are now in band one on the DKO housing register, which is the band with the highest priority for housing and all are waiting for a property. An additional 36 tenants have been successfully moved on from supported accommodation.

The SHIP team continues to work with the Police in relation to various issues that have occurred with some of the SHIP providers. Data produced for a report to MHCLG for non-commissioned supported housing, for the period 1 March 2025 - 31 August 2025 shows a 51% reduction in the number of ASB complaints reported to Durham County Council in relation to untidy gardens, dog fouling and noise complaints compared to the previous six-month period.

The SHIP hosts a quarterly non-commissioned supported housing forum, where providers, partners and colleagues from across Durham County Council come together to share updates and best practice and co-produce documents including the non-commissioned supported housing charter and pre-eviction protocols etc.

The SHIP team has also identified safeguarding concerns, or unassessed tenant vulnerabilities and takes the appropriate action. There have been 100 safeguarding and social care concerns raised since the start of SHIP for clients living in non-commissioned supported housing.

The SHIP team has worked with Public Health to secure funding via the 'Dame Carol Black' housing support grant to recruit a drug and alcohol worker to work directly with the non-commissioned supported housing providers. The NHS Health Squad have been working alongside the SHIP project since November 2023.

The report noted that the Government passed the Supported Housing (Regulatory Oversight) Act in the Summer of 2023, and that the MHCLG have not announced any continuation of funding for local authorities delivering SHIP beyond March 2026.